Programmes and Investment Committee Date: 8 …

1 Programmes and Investment Committee Date: 8 March 2017 Item: DLR Rolling Stock Replacement Programme This paper will be considered in public 1 Summary LR-PJ46C DLR Rolling Stock Replacement Programme Authority Approval: The Committee is requested to grant additional budgeted Programme and Project Authority for activities relating to the procurement of Docklands Light Railway trains and the supporting work streams, including expansion of the DLR depot at Beckton. Outputs and Schedule: 43 fixed formation trains to replace two-thirds of the Docklands Light Railway fleet which are life expired and to provide additional capacity to support housing and employment growth. The trains will be delivered between 2022 and 2024.

2 A paper is included on Part 2 of the agenda, which contains exempt supplementary information. The information is exempt by virtue of paragraph 3 of Schedule 12A of the Local Government Act 1972 in that it contains information relating to the business affairs of TfL. Any discussion of that exempt information must take place after the press and public have been excluded from this meeting. 2 Recommendation The Committee is asked to note the paper and the related paper on Part 2 of the agenda and grant additional budgeted Programme and Project Authority as set out in the paper on Part 2 of the agenda, to undertake the procurement process to appoint a manufacturer for the Docklands Light Railway (DLR) trains and supporting work streams, including the expansion of the DLR depot at Beckton.

3 3 Background Docklands Light Railway currently runs with a mixed fleet of 149 Light Rail Vehicles (LRVs)1 supplied by Bombardier. The specification for the LRVs is based on the original concept for the DLR, a light railway, carrying 1,000 passengers per hour in single 28 metre long LRVs. The network now carries over 115 million passengers per year and demand is predicted to grow considerably. 1 A single Light Rail Vehicle (LRV) on the DLR is made up of a 28 metre long articulated vehicle. These are operated as two (56 metre long) or three (84 metre long) LRV consists. Introduced into service between 1990 and 1992, the B90/92 LRVs, which make up two-thirds of the DLR fleet, have reached the end of their 25 year design life.

4 Evidence of this is the number of age related issues that have begun to occur, in particular significant bogie and bolster cracking. This is being managed pro-actively to ensure that a safe and reliable service is sustained. Rolling stock Service Affecting Failures (SAF) are increasing and it is becoming more challenging to sustain the reliability and performance of the DLR service as a consequence of rolling stock failures in service. At the same time, committed development around the DLR network is predicted to use up existing capacity around the Isle of Dogs and Royal Docks by 2021. Additional trains are needed to support this housing and employment growth. There are already plans in place for around 100,000 additional homes across the area served by DLR, and there could be 100,000 more, should more low-density land be released for redevelopment, as is now being proposed by the Greater london Authority (GLA) for the Royal Docks and is expected to be the case for other parts of Docklands over the next 20 years (Appendix 1).

5 By not replacing the older fleet, temporary life extension works would be required to sustain performance at a cost of 261m in the current Business Plan period, with reductions in service whilst LRVs are taken away to be overhauled. Replacing the life expired fleet will contribute to delivery of the Mayoral objectives and to the TfL and london Rail objectives in a number of ways. These can be summarised as: (a) to support population and employment growth across the network, especially planned development in the Royal Docks, the Queen Elizabeth Olympic Park and Isle of Dogs; (b) to provide crowding relief through increasing capacity; (c) to improve resilience and reliability by replacing life expired B90/92 LRVs with modern, reliable trains that are fit for purpose; (d) to improve customer satisfaction by increasing the amount of usable space available on trains, as well as improving ride quality and reducing journey times.

6 And (e) to increase revenue by accommodating predicted demand and drawing new customers onto a modern fleet of trains with features that provide an improved customer experience. In June 2015, budgeted Project Authority of was granted for feasibility and development of technical requirements. The TfL Business Plan approved by the Board in December 2016 includes funding of , excluding third party contributions, for the DLR Rolling Stock Replacement Programme. The project has completed feasibility and option selection stages and is ready to issue a notice in the Official Journal of the European Union (OJEU) for the design and manufacture of the replacement trains. An affordable spend profile has been developed for this project and included in the approved TfL Business Plan on the basis of a finance lease arrangement which is explained further in section 5.

7 4 Proposal Preferred Option B09/92 SAFs are increasing and pulling down overall DLR performance. When compared with the london Underground fleet, DLR B90/92 LRVs are the worst performing across TfL (see Appendix 2). In addition to age related faults, increasing operational requirements and depot stabling constraints present maintenance challenges. Daily splitting of trains into individual LRVs for maintenance and stabling, then reforming to meet service leads to coupler wear and damage over time and DLR performance data shows an increase in this type of fault. DLR departure reliability2 is currently at 99 per cent despite the fleet delivering a Mean Distance Between Service Affecting Failures (MDBSAF) of between 5,000 and 8,000km, which is very low compared to other TfL fleets and even worse from a world wide benchmarking comparison.

8 Overall DLR performance is achieved through tactical interventions by control centre staff, which allows speedy recovery in the event of a failure, including the use of bi-directional signalling; retention of a larger team of First Line Response Technicians (FLRTs) (some of which were specifically recruited ahead of the 2012 Games and retained since); the use of strategically placed sidings to move failed trains into; and targeted small packages of works on key systems. Full life extension of the B90/92 has been considered but does not present a practical solution with a number of disbenefits. The works are not affordable within the current Business Plan period. Six LRVs would need to be taken out of service at a time to deliver the works within a three year period.

9 This would mean no spare trains during the morning peak leading to a service reduction and/or regular gaps in the service. Considerable growth is planned around the DLR network in particular in the Royal Docks and Isle of Dogs. With the Elizabeth line opening in full by 2019 and planned developments, peak hour capacity will be saturated in these areas by 2021. Full DLR automatic train control signalling capability is not being used and some trains are only two-cars (56 metres) long due to the restraint of the current fleet size. This project will start to make more use of that capability with a base order of 43 trains. The most significant committed development is the Albert Business Port in the Royal Docks.

10 Outline planning permission was granted in December 2015 for a 27 million square foot office led development which will create up to 20,000 jobs. The 2 Percentage of intervals between trains at terminal stations no more than three minutes greater than the published service timetable. developer has undertaken enabling and utility diversions works and construction of the first phase started in early 2017. Work is also underway on a number of Opportunity Area Planning Frameworks, such as Poplar and the Isle of Dogs/Poplar which will increase pressure on DLR capacity. The option which provides the most benefits is a fixed formation walk through train, moving away from the existing arrangement where individual LRVs are coupled together and operated in two car (56 metres) and three car (84 metres) configurations.